The All India Gem and Jewelry Home Council (GJC) on Tuesday urged the federal government to cut back the speed of GST (items and companies tax) to 1.25 per cent.
In its pre-Price range 2022-23 suggestions to Union Finance Minister Nirmala Sitharaman, GJC has sought a cumulative GST fee of 1.25 per cent based mostly on the income equivalence precept on gold, valuable metals, gems and articles of jewelry fabricated from such items, the apex trade physique stated in a press release.
At present, the GST fee for gems and jewelry is 3 per cent.
The nationwide trade apex physique has additionally urged FM to boost the PAN card restrict to Rs 5 lakh from Rs 2 lakh, as many households in rural India don’t maintain PAN playing cards and face problem in arranging minimal required jewelry in instances of want, particularly post-pandemic.
GJC has urged the federal government that appropriate clarification be issued on the minimal amount of gold, which a person can deposit underneath the gold monetisation scheme (GMS), with out being questioned by any departmental authorities.
Additional, the trade physique requested that the EMI facility for the acquisition of 22K gold jewelry needs to be allowed to the gems and jewelry trade, which in flip shall result in a considerable progress of the enterprise of the trade after the pandemic.
“Our trade has suffered loads throughout these harsh instances of the pandemic, and it’s also recognized as one of many ‘confused sectors’ in Ok V Kamath’s report.
“Therefore, we have now proposed modifications in Part 40A of the Revenue Tax Act in order that the prevailing every day money restrict of Rs 10,000 per day be elevated to Rs 1,00,000 per day,” GJC Chairman Ashish Pethe stated.
GJC has additionally urged the federal government to waive off the financial institution fee (1-1.5 per cent) on the acquisition of jewelry by way of bank cards, thus guaranteeing increase to the ‘Digital India’ for the gems and jewelry trade, he stated.
“We’re assured and hopeful that there could also be good reliefs introduced for our trade through the Price range session,” Pethe added.
GJC additionally urged the federal government that in case jewelry offered is reinvested in new jewelry, the exemption from capital acquire as per Part 54F of the Revenue Tax Act 1961 needs to be prolonged to the gems and jewelry trade.
It will assist the trade to maneuver in direction of organized and compliant enterprise practices, it added.
On making the GMS simpler, GJC emphasised that the federal government should give exemptions to households for minimal 500 grams of gold deposited, being of ancestral nature, from questioning by any tax division.
The identical will make GMS simpler and profit the federal government and contributors at giant, GJC added.
The whole deposits amassed by the banks underneath the GMS are at round 11.1 tonnes, which is a meagre quantity as in comparison with the estimated holdings of 23,000-24,000 tonnes, the trade physique acknowledged.